Sonic Labs aims to raise $150M to integrate with TradFi
The Sonic Labs community voted on a key decision that opens the project's path to the US market. The overwhelming majority (99.98%) supported the idea of financing this initiative by issuing its own native token.
Sonic Labs is a blockchain project that emerged from the rebranding of the well-known Fantom network, founded in 2018. Sonic is a high-performance Layer-1 blockchain that combines speed, effective developer incentives, and quality infrastructure. The project's main focus is to create a platform for fast and cost-effective transactions, with an emphasis on decentralized finance (DeFi) and the gaming industry.
Currently, Sonic Labs is registered in the Cayman Islands and has a market capitalization of about $900 million. Since its inception, the project has aimed to compete in the fast and economical processing of everyday digital transactions.
The aforementioned vote took place from August 20 to August 31, and its result was the approval of a plan to attract major US investors. The strategy includes the launch of a regulated exchange-traded fund (ETF) that will track the value of the native S token, as well as a private investment in public equity (PIPE) on the Nasdaq exchange.
*PIPE (Private Investment in Public Equity) is a method by which a public company raises funds from private investors without a public offering of shares.
To carry out these plans, a new company, Sonic USA LLC, has been created. It will be based in Delaware, USA, and will focus on establishing partnerships with players in the traditional financial sector, regulatory matters, and promotion in the American market. The company plans to raise up to $150 million, of which $50 million will go to fund the ETF, and $100 million will support the PIPE deal. An additional 150 million S tokens will be used for the operational activities of the new American division of Sonic Labs.
In addition to entering the US market, the proposal includes important changes to the project's tokenomic structure. The new fee distribution system provides that a portion of the transaction fees will be burned. This should help avoid the dilution of S tokens due to their new issuance and increase the asset's value in the long run.
The successful vote indicates that the community fully trusts the project's leadership and its strategy. The approval of the proposal allows Sonic Labs to move to the next stage: creating investment products for large companies. This, in turn, can attract more investors and make S tokens more liquid.
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